The acquired business will enables Sawai to develop a US business, in addition to combining R&D capabilities with Upsher-Smith’s manufacturing base and distribution network.

Upsher-Smith produces a range of generic and branded medications, which will be distributed to pharmacies, wholesalers, retailers and healthcare organizations.

Upsher-Smith current president Rusty Field will continue to lead the company, while Upsher-Smith’s non-generic pharmaceuticals businesses will continue to be operated under Acova.

Subject to customary regulatory approvals, the deal is expected to complete by the end of June this year.

In August 2016, Sawai had unveiled its medium-term business plan called M1 Trust 2018 for a stable supply of generics.

Upsher-Smith CEO Mark Evenstad said: “Upsher-Smith has developed and delivered crucial therapies to patients, from infants to the elderly, with a broad array of on-market generic pharmaceuticals.

“We have also built a pipeline that will enable even more patients to get life-changing therapies over the next several years.”

Sawai president Mitsuo Sawai said: “We look forward to working closely with Rusty and the talented management team to forge a new global chapter in Upsher-Smith’s future together. Most importantly, we are committed to the entire team at Upsher-Smith, and to expanding the opportunities for the U.S. workforce at Upsher-Smith.”